Risk of Weak Battery Production Due to Persistently High Chinese EV Inventories
First written in FY2018-Q1. 1 of 3 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2022.
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- FY2022MitigatedAnnual report
「An amount of ¥658 million, calculated by adjusting the ¥734 million reduction in book value at the end of the previous consolidated fiscal year and the ¥114 million reduction at the end of the current consolidated fiscal year for the ¥38 million impact of foreign-exchange movements, was recognized in cost of sales in the consolidated income statement as an inventory valuation loss (a negative amount represents a reversal gain).」
The reduction in book value decreased from ¥734 million at the end of the previous fiscal year to ¥114 million at the end of the current fiscal year, resulting in recognition of a ¥658 million reversal gain on inventory valuation losses. - FY2019-Q2MaterialisedAnnual report
「At Chinese plants operated by major customers, battery production for high-end products exported from China fell substantially, resulting in a sales decline of approximately ¥500 million versus the initial plan in June alone for these markets.」
The substantial decline in battery production for export-oriented high-end products at major customers' Chinese plants materialized, and June sales alone were approximately ¥500 million below the initial plan. - FY2018-Q1First statedAnnual report
「Battery production by some of our major customers was sluggish compared with the previous year due to the persistently high inventory of electric vehicles at the end of last year. Sales in the Chinese market were ¥774 million, down 22.2% year on year.」
The persistently high inventory of electric vehicles in China led to sluggish battery production by major customers and a 22.2% year-on-year decline in sales in the Chinese market, and this is described as a new demand and sales risk.